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Engagement # 10
Marketing
The 4 P’s of Marketing (Marketing Plan) Exchange to Satisfy pp. 145 – 146
o Product – (goods or services to satisfy customer/ideas)
o Pricing
o Promotion
o Physical distribution (place)
Marketing is a key business function because of the direct interchange with the
customer. Marketing is the best position to provide the reality about the customer
needs.
Definitions pp 147
o Market – people with means to purchase
o Market strategy – overall plan of identifying market and deciding how to allocate
4 P’s to satisfy the customer
o Market Segmentation – dividing total market into groups with similar
characteristics
Demographic – age, sex, income, occupation, education
Geographic
Psychographic – lifestyles, attitudes
Undifferentiated – everyone potential buyer
Customized – each customer has different needs
o Target market – specific group you will try to sell to – a NICHE – small companies
usually are competing in a Niche
4 Major Utilities of Demand pp 148
o Form – shape, size, features
o Time – available when customer wants it
o Place – where customers want it
o Ownership – taking possession
*ATM’s are superior in time place utility to banks to secure cash!
Evolution of Marketing From a Seller’s Market to a Buyer’s Market pp 149
o Seller’s Market – more demand than supply – US prior to 1930’s – can sell
everything – charge more for products – growing economy
o Buyer’s Market – more supply than demand – US and world 1930’s to today –
Price competition – growing economy
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Question: Is marketing more important in a buyers or sellers market? Why?
Answer: Fueled by the expansion of media, marketing and sales are now a critical
part of every business, more choices you have, the more you have to make your
choice look the best
Steps in Creating a Marketing Plan pp 150
1. Achieve overall company strategy (Alignment)(Trucks/cars)
2. Establish goals, objectives, and times targets (Increase sales of hybrid cars by
200,000 by 2010 – Greensburg plant in 2008)
a. Market share - % of total market you have. 50,000 out of 1 million is 5%
market share. (30% of hybrid car sales in US – 5% of total car sales)
3. Market research – We did market research in this class – determine if product
will satisfy a demand
4. Internal/external capabilities (Make/buy/outsource/offshore)
5. Create a plan (Specific)
Breaking down the 4 P’s pp 152
o Product – Consumer or Industrial
A defined good or service
Brand name – recognize the brand
Package – part of brand recognition
Warranty
Support service
Image
o Consumer goods
Convenience – intensive coverage – purchase frequently and found in
many types of outlets – soap, toothpaste, deodorant – purchased on
price and location
Shopping – selective coverage – check around – sold in limited outlets –
designer jeans
Specialty – exclusive coverage – high prices limited outlets – Rolex
watches
Product functions pp 154
o Research – identify opportunities and demand – vs. going in blind. Personal
interviews – telephone – samples
o Product development – based on research best product from many. 100 – 20 – 5
– 2 – 1 – keeps products fresh in eyes of changing demands
o Product life cycle – start up, growth, maturity, decline. Need to have new
products
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o I didn’t get the rest of this and the next slide. He went fast
o Price – pp 159 exchange value how much willing to buy at a given amount –
scorecard is total profit
Price skimming – so new and so great charge high price at introduction.
High profits before competitors enter in. Cannot sustain this type of
pricing.
Price Penetration – artificially low prices to capture volume quickly, and
discourage potential competitors. Has to be profitable or cannot sustain.
o Promotion – marketing communication – tools to use pp 160-161
Promotion Mix – Market Research
personal selling, public relations, publicity, promotions
o Personal Selling approaches pp 162
o Telemarketing – telephone usually unsolicited
o Retail sales – customer comes to a retail location
o Expert selling – specialty items – requiring a degree of knowledge – truck
sales
o Missionary selling – visit customer to create relationship – hope to create
a client
o Creative selling -
o Team selling
o Distribution channel – path products follow, through who they move and where
they stop (inventory) 164-165
o Most common path
Manufacturer
Wholesaler
Retailer
Customer
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